SoftBank Wipes Out 2.875% Euro Note Early as Credit Markets Turn a Harder Eye on Its AI Spending
Published on 10/25/2026 at 06:51 | Editorial boerse-global.de
SoftBank Group has finished calling in its euro-denominated senior bond carrying a 2.875% coupon, retiring the notes ahead of schedule and leaving nothing outstanding under that issue. The paper had been slated to mature on January 6, 2027; it is now fully redeemed.
The buyback removes a modest slice of debt from a balance sheet that has otherwise become the subject of unusually close scrutiny. Five-year credit default swaps on SoftBank climbed to 432 basis points on Tuesday, according to Bloomberg — the widest level in nearly four years. The report tied the move to unease over the group's AI-related financing and a potential acquisition of Allied Universal.
A Takeover That Would Need Fresh Money
Sharon Chen, an analyst at Bloomberg Intelligence, said Tuesday that SoftBank would have to raise new funds to pull off such a deal. Reuters reported on October 16 that the Japanese conglomerate was weighing a purchase of the US security-services provider from Warburg Pincus and La Caisse, in a transaction that could value Allied Universal at roughly $18 billion. Talks were described as early-stage, with no final decision reached.
Bloomberg put the potential total value, debt included, at close to $30 billion as of October 16, with the equity component at about $18 billion. SoftBank declined to comment on the matter.
Should investors sell immediately? Or is it worth buying SoftBank Group?
The funding question looms larger against the group's recent borrowing. Reuters reported on October 14 that SoftBank had raised $11 billion through its largest-ever high-yield bond sale, with yields reaching as high as 9.75%. That the company can tap capital markets is clear enough; whether every project the proceeds support will earn its cost of capital is a separate matter — one investors are increasingly unwilling to take on faith.
AI Spending Under the Microscope
Sentiment has shifted. Reuters reported growing investor caution amid a broader selloff in Japanese chip-related stocks, and Bloomberg said Thursday that concerns about higher financing costs and the durability of AI investments had intensified. Strong results from major US technology companies did little to settle those nerves.
Not every headline commitment carries the same weight. On October 8, SoftBank signed a framework agreement with Grab Holdings and Petroleum Sarawak Berhad to explore an AI and digital infrastructure platform in Sarawak. The arrangement is non-binding, and the parties are under no obligation to sign final contracts — a long way from a confirmed investment project.
SoftBank Group at a turning point? This analysis reveals what investors need to know now.
November Results as the Next Yardstick
SoftBank has set November 10, 2026 as its next confirmed reporting date, when it will publish second-quarter results for fiscal 2026, covering the six months through September 30, 2026. Those figures are likely to give investors a firmer basis for judgment than further speculation about possible mega-deals.
The early redemption of the 2027 euro notes, then, is a tidy piece of housekeeping rather than a turning point. What matters more is the gap between what SoftBank can borrow and what it can convincingly justify spending it on. With funding costs where they are and expansion options multiplying, the burden of explanation falls on the company — and the clearest signal would not be the size of its next move, but a credible ranking of priorities behind it.
Ad
SoftBank Group Stock: New Analysis - 25 October
Fresh SoftBank Group information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
